Opened in Asia at $1.0305 after a strong recovery in Europe and NY from lows of $1.0226 yesterday in the Far East. Aussie pushed up to $1.0329 on dovish comments from Fed’s Yellen before easing back to $1.0296 ahead of the employment data. The release stunned the market expecting a rise of just 4,000 jobs, coming in at +44,000 which sparked a very sharp rally that tripped stops through $1.0360. Another wave of buying triggered stops through $1.0365 to the highs of $1.0385 which met with reserve manager supply. The data has also led some to tone down talk of a possible rate cut at the next RBA meeting. Offers now lie towards $1.0400 with stops above. Bids have since surfaced in the $1.0340/50 with sell stops below through $1.0320. The strong data was also felt in the EUR/AUD which plummeted from A$1.2730 to A$1.2646, and GBP/AUD which plunged to A$1.5340 from A$1.5460. AUD/NZD soared from NZ$1.2574 to NZ$1.2655. AUD/JPY was subsequently dragged higher from Y83.27 to Y84.03.
EasyForexNews Research Team